China-as trade war: The trade war between the US and China is no longer limited to the ban on tariffs and companies. Now this war has reached control over the supply of necessary resources. China has recently implemented strict control over the export of its Rare Earth Elements, which could have a profound impact on the industries, military needs and technological development of the US and its allies.

Rare Earth Elements are a group consisting of 17 special metals. It is considered to be very important in the manufacture of different types of high-technology machines such as electric motors, drone-mesiles, jet engine-ligger, computer chips-smartphones, EVs and satellites. Especially Heavy Rare Earth Elements (Hree) such as dysproosium, terbium, yitrium are used to make magnets that act like a component of state -of -the -art electronic and military equipment.

China’s king in the world
China produces about 90% of Rare Earth Elements in the world. His monopoly position on this resource gives him a strong power. Countries like America, Europe, Japan and India depend on this supply chain. There is only one rare meaning mine in America. The mine of Myanmar and Laos is also under China’s control. China has complete control of refining and processing technology.

What things will affect China’s decision?
If the export of Rare Earth metal is completely controlled by China, then it can see a wide impact on the following areas, which is as follows.

Area effect
Defense missiles, drones, radars, fighter jets affected
Magnets used in automobile electric vehicles
Semicunder computer chips, AI server, impact on smartphones
Aerospace satellite jet engine construction slows down
Companies like Lockheed Martin, Tesla, Apple may be directly affected by this crisis.

America’s challenge
America has some rare earth elements reserves but it is insufficient for permanent supply. In such a situation, America will have to insist on increasing indigenous production. He will have to go towards countries like Australia, Canada for supply. America will need to pay attention to recycling technology. Strategic stockpile means he will have to work with his old stock.

New policy and export license complexity
Beijing has drafted a new regulatory system. All exports will be under special license as soon as it is implemented. However, this license process is slow and opaque. Some companies (such as US defense contractors) can be permanently blocked. According to the New York Times report, the consignment of many magnets has already been stopped at Chinese ports.